Business Partnership Registration

[Francisco Solano]

Hi BP Community!

I have found a reliable person who I will be working with in securing distressed real estate. He will be providing the capital to cover the closing costs and part of the rehab. He will also physically work on the properties at this point. Our current focus is working on 1-4 unit fix and flips, but eventually work towards being able to refinance properties and keep and cash flow them.

My question is  tailored on the the way I should structure our relationship for the legal and tax base purposes.

Should I secure the deals under my business and pay my partner out of my business operating account?

Would it be wise to set up a new business with he and I as registered agents and lock up deals under this entity?

What type of entity would be best to pay less taxes? Would setting up an S-Corp be the best option?

Thank you so much for the input!

-Frankie